Avison Young has negotiated the sale-leaseback and restructuring of a 69,500-square-foot office building in Chicago’s O’Hare submarket. The building, located at 1001 E. Touhy Avenue in Des Plaines, Illinois, is principally leased to the Lutheran Social Services of Illinois.
Avison Young principals Hugh Williams and Michael Fonda, both based in the company’s Chicago office and members of the firm’s industrial practice group, represented MK Asset Management in the acquisition of the property. Jonathan Seeley, managing director of Bradford Allen, represented the seller, Lutheran Social Services of Illinois. Financial details were not disclosed.
“With tremendous infrastructure improvements to I-90, I-294 and O’Hare International Airport, coupled with strong fundamentals, the O’Hare submarket is one of the premier suburban office markets in the country, and we’re excited about planting a flag here,” said Jared Margolis, president of MK Asset Management. “1001 E. Touhy marks the first of several assets we’re looking at in this area of Chicago, and the Avison Young team will be helping us expand our footprint.”
MK Asset Management began capital improvements to the property immediately upon acquisition, with interior and exterior common space improvements concluding in June 2018. The property features an updated tenant lounge and common areas, new roof, easy accessibility to O’Hare International Airport and is directly adjacent to I-90. Signage opportunities offer exposure to more than 149,100 vehicles per day. The building currently has approximately 23,000 square feet of contiguous space available and is being marketed with aggressive rates.
Avison Young principal Fred Ishler and associate Olivia Parker, both based in the company’s Chicago office and members of the firm’s suburban agency leasing group, will represent MK Asset Management in the marketing and leasing of the property.
“Our goal is to acquire assets aggressively on the front end,” Margolis said. “This allows us to provide optimal rates and exceed tenant expectations.”
MK Asset Management currently has a portfolio approaching $100 million, focused in the Midwest and Southeast with assets in metropolitan Chicago and Atlanta. The Chicago-based firm manages more than 1,600 multifamily units and over 1 million square feet of commercial space including office, retail and flex industrial space.